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How to Earn 5% in a High-Yield Savings Account

As federal interest rates rise, you can take advantage of high-yield savings at or near 5% today.

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Although the cost of debt has skyrocketed, it has a major advantage Today’s high interest rates You should take advantage of: Main Earn high yields On savings.

Today’s Best High Yield Savings Account You can get from 4% 4.5% or more on your savings balance. Also, they often charge No monthly fee and relatively low minimum balance requirements (if any). These accounts can help you earn hundreds of dollars in interest each year, depending on your balance.

running with Federal Reserve rate hike Sending the Fed’s target rate range above 5%, a select few savings accounts offer 5% APY — and more that earn close to that. Below, we’ll cover what you need to know if you want to maximize your interest rate

Compare today’s top savings rates here.

How to earn around 5% APY on savings

They may look good on the surface, but many accounts today that offer more than 5% APY come with additional restrictions that can limit your earnings or make saving more complicated (more on that soon). So, you may want to look for accounts with lower limits and no monthly fees that still earn around 5% APY.

Here are a few to consider:

CIT Bank: 4.85% APY

CIT Bank’s Platinum Savings Account earns 4.85% APY — just under 5%. You need to deposit $100 upon opening and maintain a balance of $5,000 or more to earn the higher rate. There are no account opening or monthly maintenance fees with this account.

Laurel Road: 4.80% APY

You can earn 4.80% APY when you open a high-yield savings account with Laurel Road (a division of KeyBank). There are no monthly maintenance fees, and you don’t have to meet any minimum deposit or balance requirements for this account.

Basque Bank: 4.75% APY

The Interest Savings Account from Bask earns you 4.75% APY on your savings balance. There are no monthly fees, and the only requirement is that you deposit some amount within 15 days of account opening

Learn more about the top savings account rates available now.

What to know about accounts with more than 5% APY

If you want to earn more than 5% on your savings account, you may have to jump through a few hoops. There are fewer options than those in the 4.5% to 5% range, and they often come with more restrictions.

Look for higher monthly fees and minimums than many other competitors High Yield Savings Account Offers You may encounter the requirement to open multiple bank accounts or promotional rates that apply only up to a certain threshold.

For example, Varo Bank offers an online savings account with a 5% APY However, you’ll only earn that rate up to $5,000. For any amount above that, you will earn only 3%. Also, to open a savings account you must have a substantial bank account, receive direct deposits of at least $1,000 per month, and have positive balances in both accounts at the end of the month.

Or, consider CFG Bank. This bank’s high-yield savings option is technically a Money market savings account and earns 5.07% APY. However, you must deposit and maintain at least $1,000 in the account or face a $10 monthly maintenance fee.

While these may not be deal breakers in exchange for yields above 5%, you should decide whether they’re worth the extra effort compared to an account with slightly lower yields and fewer restrictions.

Bottom line

If you’re not already using a high-yield savings account, you can be lost A lot of added value on the money you save. Fortunately, there are plenty of accounts to choose from that offer competitive rates and terms to help maximize your savings.

to find out The best account for you, make sure you consider interest rates along with other account details — fees, minimums, account access and other restrictions — that could affect your savings over the long term. Whether you choose a 5% APY or 4.8% or even one closer to 4.5%, you can rest easy knowing your money is working for you.

Looking for an easy way to save? Compare the top high-yield savings accounts today.

MoneyWatch: Managing Your Money

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